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Sensex Gains 266 Points as RBI Holds Rates, Markets End Flat

Domestic equity benchmarks ended mostly flat with a slight positive bias after the RBI's Monetary Policy Committee decided to pause and keep the repo rate unchanged. The Sensex gained 266 points, supported by late buying in FMCG and private banking stocks, while the IT sector continued to underperform. Analysts noted the policy was in line with expectations but lacked a dovish tone, leading to an uptick in bond yields. The Nifty is seen consolidating in a range between 25,500 and 25,700, with a breakout needed for a directional move.

Key Points: Sensex Up 266 Points, Nifty Flat After RBI Policy Pause

  • Sensex climbs 266 points
  • RBI holds repo rate at 5.25%
  • Nifty support at 25,500, resistance at 25,700
  • FMCG and private banks gain
  • IT sector underperforms
2 min read

Stock market ends mostly flat, Sensex climbs 266 points

Stock markets end mostly flat with Sensex up 266 points after RBI keeps repo rate unchanged. Analysts see range-bound trading ahead.

"Domestic equity markets traded largely subdued... before staging a late recovery. - Vinod Nair, Geojit"

Mumbai, February 6

Domestic equity benchmark indices on Friday ended mostly flat but with a slight increase after the Reserve Bank of India's monetary policy committee announced its decision to take a pause over repo rate.

Buying enthusiasm picked up later in the session as the Sensex climbed 266.47 points to settle at 83,580.40 while Nifty 50 advanced 50.90 points to close 25,693.70.

Among the sectors, PSU Bank, IT, pharma dipped while FMCG oil and gas, consumer durables, private banks, and realty rose.

Domestic equity benchmarks opened on a cautious note and then slipped into the red.

Vinod Nair, Head of Research, Geojit Investments Limited said, "Domestic equity markets traded largely subdued through most of the session before staging a late recovery, supported by selective buying in FMCG and private banking stocks. In contrast, the domestic IT sector continued to underperform. The RBI's policy announcement was broadly in line with expectations, maintaining status quo on interest rates while reiterating a constructive growth outlook."

"However, markets had anticipated a mildly dovish undertone, which failed to materialise as the RBI retained its neutral stance, resulting in an uptick in India's 10-year bond yields. On the global front, investor focus remains on US-Iran negotiations with potential implications on crude oil prices, alongside ongoing developments in AI and technology that continue to drive global sectoral rotations," Nair said.

Rupak De, Senior Technical Analyst at LKP Securities on Nifty said "The index has been consolidating over the last few sessions. On the lower end, support is placed at 25,500, while on the higher end, resistance is seen around 25,700. In the short term, the index is likely to remain range-bound between 25,500 and 25,700. A decisive breakout on either side of this range could trigger a directional move."

Earlier in the day, the RBI Governor Sanjay Malhotra announced that the Monetary Policy Committee (MPC) has unanimously decided to keep the policy repo rate unchanged at 5.25 per cent, while continuing with a neutral policy stance.

With the repo rate unchanged, the Standing Deposit Facility (SDF) rate remains at 5 per cent, while the Marginal Standing Facility (MSF) rate and the Bank Rate continue at 5.5 per cent.

- ANI

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Reader Comments

R
Rohit P
Sensex above 83,500 is still a great level! 🚀 Small investors like me are happy with steady growth. The range-bound movement Rupak De mentioned is perfect for SIPs. Keep investing for the long term, bhai log!
V
Vinay O
The underperformance of IT is a concern. As someone working in the sector, I see global headwinds continuing. The market seems to be rotating to domestic-focused stories like FMCG and banks. Smart move by the RBI to hold rates with an eye on inflation.
S
Sarah B
Interesting analysis. The mention of US-Iran talks and oil prices is key for India. A spike in crude could change everything and put pressure on the RBI. For now, stability is good news.
A
Aman W
PSU banks dipping again... when will this sector revive? Otherwise, a neutral policy was the need of the hour. The realty sector rising is a positive sign for the economy.
K
Kriti O
As a respectful criticism, I feel the media focuses too much on daily points movement. For the common person, what matters is whether loans get cheaper or jobs are created. The RBI's constructive growth outlook is the real headline for me.

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